Greater Manchester Pension Fund (GMPF) has provided a £31.3m (€37.2m) loan to UK developer Placefirst to help fund their housing projects.
CBRE’s lending team, acting on behalf of the pension fund, has provided the loan to support Placefirst’s development of build-to-rent (BTR) schemes in Bolton and Halifax town centres.
The Bolton project has received £22.6m for the delivery of 167 one and two-bedroom units and the Halifax has received £8.75m for 122 one and two-bedroom units. Both projects are currently under construction and are expected to be completed by the end of 2025.
Councillor Gerald Cooney, chair of GMPF said: “As a leader of a council as well as a chair of a pension fund I know the depth of the housing crisis in which we find ourselves as a nation. We see it as we place record numbers of homeless children in temporary accommodation; as we grapple with waiting lists for social housing getting longer and longer; and younger residents are priced out of home ownership.
“That’s why we are proud to make this investment with Placefirst and support the government’s plan to provide much needed affordable homes for hardworking families whilst delivering strong low risk returns to pay the pensions of our hardworking members.”
Will Church, executive director at CBRE, said: “We deploy significant amounts of debt from our pool of capital into the North West, as recently demonstrated by these two whole loans to Placefirst. This is the second loan we have made on behalf of GMPF since securing our mandate and the first housing-led loan.
“This loan will contribute to the essential housing needed in the region, while adding real socio-economic benefits to Bolton and Halifax town centres. We remain interested in supporting further development across all main asset classes with loans that have appropriate risk adjusted characteristics and, crucially, which bring regeneration to the region.”
David Mawson, chief executive for Placefirst, said: “As developers and operators, we are long-term partners with our residents and the communities we build in which is why we’re people-focused from design to operation.
“This GMPF loan is a testament to the social and economic benefits our developments have been proven to deliver for local communities. From encouraging wider investment into the area to helping communities connect, our developments offer long-standing value.”
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